Management Information Systems_Haag_ ChapterII-PartI

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    HistoryIntroductionSupply Chain Management (SCM)Industry Perspective & VendorsCustomer Relationship Management (CRM)Industry Perspective & VendorsEnterprise Resource Planning (ERP)Industry Perspective & VendorsQuestions

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    Technology is a game changerHotels (in-room telephones)Travel Agencies (booking & reservations)

    1996 : 150,000 travel agencies (web technology)1999 : 171,600 travel agencies2004 : 115,0002009 : 95,000

    Air LinesLufthansa Miles & MoreHoma class

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    Information Technology as a competitiveadvantageFour most important IT implementations ofcompany Biz. Strategies1. Supply Chain Management (SCM)2. Customer Relationship Management (CRM)3. Enterprise Resource Planning (ERP)4. Social Media (Social Networking , )

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    Areas :Supply chain (path of product/service from supplier to producer)Distribution chain(path of product/service from producer to end consumer/customer)

    Logistics

    ApproachesTraditional (selling through retailers) (buy , hold & sell)

    Warehouse operations & costsObsolete product or service

    Direct (JIT) (Dell computers , Ford Motor) (sell , source & ship)Web basedNo/Min Warehouse operation & costsNo obsolete product or service

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    SCM strategic and competitive opportunities:

    1. Overall cost leadership (Porter) , running theorganization (RGT framework)

    2. Cost & price : acceptable part costs & product prices3. Fulfillment : having right quantity at the right time for

    production or sale4. Logistics : minimizing material transportation costs &

    reliable delivery5. Production : smooth running of production lines

    (quality & availability)6. Revenue & profit : no lost sales

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    Terms & DefinitionsSCM :

    IT based system that support supply chain management activities byautomating the tracking of inventory and information among biz.Processes and across companies.

    JIT :A method for producing or delivering a product/service just at the timethe customer wants it.Optimum level of parts.

    Information partnership :Two or more companies cooperating by integrating their IT systems forproviding customers with the best offers.

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    IKCO , SAPCO , ISACO1. Logistics & Tracking systems2. Kanban

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    SAP (www.sap.com )Oracle (www.oracle.com )Microsoft Dynamics ( www.microsoft.com/dynamics )Sage (www.sageerpsolutions.com )NetSuite ( www.netsuite.com )

    http://www.sap.com/http://www.oracle.com/http://www.microsoft.com/dynamicshttp://www.sageerpsolutions.com/http://www.netsuite.com/http://www.netsuite.com/http://www.sageerpsolutions.com/http://www.microsoft.com/dynamicshttp://www.oracle.com/http://www.sap.com/
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    RelationshipsInformation fed to SCM to ensure right amount of productavailable in the right location at right time.

    Delivery Modelsin-house

    buying & install locally

    SaaS (Software as a Service)Hosted by software publishers with a pay-per-use basisin cloud computing environments(www.salesforce.com ) (www.netsuite.com )

    http://www.salesforce.com/http://www.netsuite.com/http://www.netsuite.com/http://www.salesforce.com/
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    CRM strategic and competitive opportunities :

    Differentiation & focus (Porter) and growing theorganization(RGT framework)Devising more effective marketing campaignsAssuring the sales process managed efficiently

    Providing superior aftersales service & support

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    Terms & DefinitionsCRM :

    Uses information about customers to gain insights into their needs,wants and behaviors in order to serve them better.

    Multi-channel service delivery :The term that describes a companys offering multiple ways in whichcustomers can interact with it. (Emails , fax , text , phone , web , )

    Sales Force Automation (SFA) systems :Automatically track all the steps in the sales process.(contract management , sales lead tracking , forecasting , ordermanagement & product knowledge)

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    Terms & DefinitionsFront office systems :

    Primary interface to customers & sales channels , they send all thecollected customer information to DB.

    Back office systems :Used to fulfill and support customer orders , they send all thecollected customer information to DB.

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    IrancellShatelIKCO

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    SAP (www.sap.com )Oracle (www.oracle.com )Microsoft Dynamics ( www.microsoft.com/dynamics )Sage (www.sageerpsolutions.com )NetSuite ( www.netsuite.com )SugarCRM ( www.sugarcrm.com )

    http://www.sap.com/http://www.oracle.com/http://www.microsoft.com/dynamicshttp://www.sageerpsolutions.com/http://www.netsuite.com/http://www.sugarcrm.com/http://www.sugarcrm.com/http://www.netsuite.com/http://www.sageerpsolutions.com/http://www.microsoft.com/dynamicshttp://www.oracle.com/http://www.sap.com/
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    History:MRP (Materials Requirement Planning)(1970s)

    Right material at the right timeMRP II (Manufacturing Resources Planning) (1980s)

    EIS (Executive Info. Sys.) + DSS (Decision Support Sys.)Digital dashboards

    ERP (1990s)Master DataCompany wide integrated systemAgile

    ERP II (2000)CRM SCM

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    Some Info :7.7 billion $ in 2009 (USA)%60 big companies (USA)

    SAP : LogisticsOracle/PeopleSoft : FinancialsInfor : ManufacturingMicrosoft : Retail ManagementAbout 50 ERP provider (from 1990)

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    Reasons :GlobalizationGeneral market maturity

    A replacement for Islands of information & process Integration of fin. , HR , manufacturing , logistics ,

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    ERP basic goal:

    Integrated information (Data , Info. , BI)One suite of applications (replacing/reducing legacy systems)Unified interface across enterprise

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    Terms & DefinitionsERP :

    Collection of integrated software for Biz. Management , accounting ,finance , project management , SCM , CRM , e-collaboration and ahost of other Biz. functions.

    Legacy Information System (LIS) :Massive long-term Biz. investment in a software system with a single

    focus.

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    Implementations :IKCO (SAP R/3)MAPNA Turbine (SAP R/3)MaziNour (IFS)

    Consultants :TEC (www.technologyevaluation.com )

    NOT overnight processChoose & TailorExpensiveROI

    http://www.technologyevaluation.com/http://www.technologyevaluation.com/
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    Small Biz.(500 seats)

    SAP (www.sap.com ) [SAP BO , SAP All-in-One , SAP Ent.]

    Oracle (www.oracle.com ) [- , - , Oracle Biz. suite]PeopleSoft [- , - , PeopleSoft suite ]Microsoft Dynamics ( www.microsoft.com/dynamics ) [SL , GP , AX]Sage (www.sageerpsolutions.com ) [X3 , - , -]Epicor (www.epicor.com ) [- , Epicor ERP , -]Infor (www.infor.com ) [- , Infor suite , -]

    http://www.sap.com/http://www.oracle.com/http://www.microsoft.com/dynamicshttp://www.sageerpsolutions.com/http://www.epicor.com/http://www.infor.com/http://www.infor.com/http://www.epicor.com/http://www.sageerpsolutions.com/http://www.microsoft.com/dynamicshttp://www.oracle.com/http://www.sap.com/
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